The Empirical Study Of Measurement Of Fair Value To Value Relevance Of Accounting Information

February15,2006,Ministry of Finance officially announced a set of accountingstandards system—《Enterprise Accounting Standards》.The moderate apply of fairvalue is the biggest bright point of current accounting standards.The promulgationand application of current accounting standards achieve convergence with IFRS,andadapt more to the requirements of the development of chinese market economy.However while fair value measurement vigorously pursued in china,the financialcrisis which outbreaked in the united states made the fair value caused great challengeand controversy.the value relevance of accounting information as a fundamentalproperty of the accounting information on the securities market regulation,as well asaccounting reform and investor decision-making.fair value accounting informationvalue of great significance to the exploration of the accounting development,andimprove accounting theory,promoting discipline construction.In this paper, firstly,we analyzed theoretically the background and necessity ofthe modest application of fair value,then chose the samples and conduct empiricaltests.The finding of the research： the implementation of the existing fair valueaccounting standards substantially improved the value relevance of non-financialsector, the value relevance of financial sector had also improved in addition to thefinancial crisis year;Moreover, earning per share was more reasonable in the valuerelevance than net asset per share,which proved that the idea of income-expense wasfiltering into people’s heart,but the concept of asset-liability was not completelyaccepted by market;In addition,fare value itself also had incremental value relevance.Accordingly,it is quite necessary to introduce fare value moderately,and establishan ordered and complete trade market at the same time;improve fare value theorysystem;perfect disclose and supervise mechanism of uncertainty of fare valueinformation;improve the information disclosure regulatory mechanism;enhance theprofessional skill and quality of accounting practicers.